Nvidia, the chip-making giant at the core of the AI boom, is set to report its fourth quarter earnings on Wednesday. This will be a test of the AI boom, raising questions as investors reckon with the possibility of slower growth from the company and other Big Tech players that have heavily invested in AI—mainly by spending billions and stockpiling Nvidia chips.
While the $3.4 trillion company took a serious hit, following Chinese startup DeepSeek’s disruption of the industry with its cost-effective AI model, the chipmaker seems to have somewhat recovered.
READ: This robotics startup has a sustainable solution for refurbishing discarded electronics (January 24, 2025)
“DeepSeek is high in novelty claims but time will tell whether it creates a disruption in current AI models and AI architectures,” said Dan Morgan, senior portfolio manager at Synovus. However, Nvidia is also currently facing manufacturing issues, and scrutiny over its Blackwell chip architecture.
Tech companies are also currently seeking alternatives to Nvidia, and many startups are positioning themselves as competitors.
“Investors have been very concerned about DeepSeek and the impact that it will have on demand,” said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. “So if they (Nvidia) can show that they’re still able to ‘beat and raise,’ it would be pretty positive for the stock.”
READ: China disrupts AI market with DeepSeek: A better, cheaper version of ChatGPT? (January 27, 2025)
Reports have predicted that Nvidia will report a 72% surge in revenue, around $38.05 billion in its fourth quarter, according to LSEG data—its slowest growth in seven quarters. It is likely to forecast a 60% jump in revenue for the first quarter ending April. In contrast, the company’s revenue has seen five straight quarters of triple-digit growth until the previous quarter ended in October 2024.
Nvidia’s upcoming earnings are set to point where the AI revolution is headed next with Nvidia taking center stage with its AI GPUs.